Abstract

This article characterized land prices of the Pampean Region of Argentina employed a hedonic price model in order to value soil erosion. The methodology employs a linear hedonic price model to explain the rental rates of agricultural land, extending the model in order to consider variables associated with the relationships between economic agents due to the presence of asymmetric information. The results indicated that the variables associated with the relationships between economic agents due to the presence of asymmetric information were statistically significant. The value of each centimetre of soil lost through the process of erosion, estimated with the restricted linear model, was $0.53·centimetre-1. Additionally, the value of soil labour was $8,7/labour. The results were consistent with those of other researchers and were important to value the erosion process in the Pampean Region of Argentina.